According to Gartner bean counters, global semiconductor revenue is projected to grow 16.8 per cent in 2024 to total $624 billion.
This figure is much better than this year, where the market is forecasted to decline 10.9 per cent and reach $534 billion.
Big G analyst Alan Priestly said: “We are at the end of 2023, and strong demand for chips to support AI workloads, such as GPUs, is not going to be enough to save the semiconductor industry from double-digit decline in 2023.”
“Reduced demand from smartphones and PC customers coupled with weakness in datacentre/hyperscaler spending is influencing the decline in revenue this year.”
However, 2024 is forecast to be a bounce-back year where revenue for all chip types will grow, driven by double-digit growth in the memory market.
The worldwide memory market is forecast to record a 38.8 per cent decline in 2023 and will rebound in 2024 by growing 66.3 per cent, Priestly said.
Anaemic demand and declining pricing due to massive oversupply will lead NAND’s flash revenue to drop 38.8 per cent and fall to $35.4 billion in revenue in 2023.
Over the next three to six months, NAND industry pricing will hit bottom, and vendor conditions will improve.
Gartner analysts forecast a robust recovery in 2024, with revenue growing to $53 billion, up 49.6 per cent year-over-year.
Developments in GenAI and large language models are driving demand for the deployment of high-performance GPU-based servers and accelerator cards in data centres. This creates a need for workload accelerators to be deployed in data centre servers to support training and inference of AI workloads.
Gartner analysts estimate that by 2027, integrating AI techniques into data centre applications will result in more than 20 per cent of new servers, including workload accelerators.
